Bitcoin fell below $64,000 after a short sell-off in Strategy BTC added pressure to a market already dealing with ETF exits and renewed criticism from high-profile skeptics.
Summary
- Bitcoin dropped below $64,000 after Strategy revealed a 32 BTC sale, sparking new concerns across the crypto market.
- Jim Cramer said Strategy’s move shook confidence because investors view Saylor’s company as a major supporter of Bitcoin.
- SoSoValue data showed US spot Bitcoin ETFs recorded $1.40 billion in outflows in early June.
According to the latest disclosure of Strategy, the Bitcoin financial company led by Michael Saylor sold 32 BTC after trading opened on Monday, days after BTC traded below $ 74,000 on June 1. The sale was small compared to the total value of the company, but traders quickly focused on holding time because Strategy has long been considered one of the most visible Bitcoins behind many companies.
Bitcoin fell sharply after the announcement, and Strategy shares also came under pressure. Market data cited in the report showed MSTR has fallen by about 15% since the disclosure, with the company sitting on an unreachable Bitcoin loss of about $10.8 billion.
Cramer Says Selling Strategy Has Shaken Bitcoin Confidence
CNBC host and former hedge fund manager Jim Cramer said Saylor’s decision has puzzled crypto traders because many investors believe the Strategy helped support Bitcoin’s previous highs.
In his comments after the disclosure, Cramer said he may have to rethink his pro-Bitcoin stance because the Strategy has been “supportive” for years. He described the Strategy as “the main trampoline” for Bitcoin, although he said calling out market manipulation would be “too strong.”
Cramer later asserted that the sell-off changed the way investors viewed Bitcoin’s recent rise. He said many traders now believe the crypto has reached previous highs mainly because of Saylor’s continued buying. In response to Strategy’s unrealized losses, Cramer referred to the “killing” of Bitcoin and criticized the company’s position.
ETF Exit Adds Pressure to Bitcoin
SoSoValue data showed that US spot Bitcoin ETFs posted $2.43 billion in net outflows in May. The same data showed another 1.40 billion dollars leaving the funds during the first three days of June.
That withdrawal added pressure after Bitcoin had already struggled for months following the flash crash on October 10 last year. ETF data suggests institutional demand has eased at the same time Strategy’s sell-off has raised questions about BTC’s business support.
Bitwise consultant Jeffrey Park offered another explanation for the withdrawal. Park said some investors may be cashing out of Bitcoin to prepare for potential IPOs, including SpaceX and Anthropic.
Schiff Renews Attack on Saylor’s Bitcoin Strategy
Economist and long-time Bitcoin critic Peter Schiff said the recent price action represents more than a general fluctuation. Schiff argued that investors sell Bitcoin to avoid large losses or move on to other investment opportunities.
Schiff also said that Saylor is caught in a difficult cycle because Strategy needs to keep buying Bitcoin as other investors sell. According to Schiff, the company’s ability to support Bitcoin depends on whether it can continue to issue stock.
He went on to say that Strategy may face problems if MSTR trades at a discount. In Schiff’s view, weak access to share issuance could hurt the company’s ability to buy more Bitcoin and maintain confidence in its wealth system.
Although Strategy’s 32 BTC sale was small, the market reaction showed how closely investors were tracking Saylor’s moves. Cramer, Schiff, and ETF flow data have each put the Strategy back at the center of the Bitcoin debate.
